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KERR-McGEE ACQUIRES INTEREST IN SOUTH CHINA SEA PROJECT

 OKLAHOMA CITY, Jan. 10 /PRNewswire/ -- A Kerr-McGee Corp. (NYSE: KMG) subsidiary, Kerr-McGee Liuhua Ltd., has agreed to participate with Amoco Orient for a 24.5 percent interest in the development of the Liuhua 11-1 oil field project in the South China Sea. Kerr-McGee acquired its interest from Amoco, which retains a 24.5 percent interest and operates the project. Kerr-McGee's participation is subject to approval by the China National Offshore Oil Corp. (CNOOC), which has a 51 percent interest. CNOOC is represented in the Liuhua partnership by its operating subsidiary, China Offshore Oil Nanhai East Corp.
 The Liuhua 11-1 field is located 135 miles southeast of Hong Kong in approximately 1,000 feet of water. Amoco Orient discovered the field in January 1987 with the drilling of the Liuhua 11-1-1A well, which tested at rates of 2,240 barrels per day of 21-degree API oil from a Miocene- aged carbonate. Long-term production tests at rates in excess of 6,000 barrels per day have been performed during the field appraisal. The reservoir is the largest oil-bearing accumulation found to date in the South China Sea, containing over one billion barrels of oil in place.
 "Amoco Orient and Kerr-McGee share a common vision for the development of the Liuhua 11-1 Oil Field," said Joe Bryant, Liuhua project manager for Amoco Orient. "This partnership is consistent with our long-term growth strategy in China. Amoco is confident that Kerr- McGee will complement Nanhai East and Amoco's expertise and contribute to the ultimate success of the development." Amoco Orient is a subsidiary of Amoco Production Co., the worldwide exploration and production arm of Amoco Corp.
 Development drilling is scheduled to begin in the second half of 1994 and continue until 1997. Production is scheduled to commence in 1996 and is projected to add 16,000 barrels per day net to Kerr-McGee's oil output by 1997.
 The field will be developed by means of an innovative system using two permanently moored floating production vessels and a subsea production system. Approximately 20 horizontal development wells will be drilled, all of which will be produced with downhole electric submersible pumps, the first use of such pumps in a subsea development.
 -0- 1/10/94
 /CONTACT: Dow Dozier of Kerr-McGee, 405-270-3170/
 (KMG)


CO: Kerr-McGee Corp.; Kerr-McGee Liuhua Ltd.; Amoco Orient; China
 National Offshore Oil Corp. ST: Oklahoma IN: OIL SU:


JM-JB -- LA030 -- 0939 01/10/94 14:26 EST
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Publication:PR Newswire
Date:Jan 10, 1994
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